Weekly ETF Report

Mutual Funds Are Hazardous to Your Wealth 4

January 27, 2010

From peak to trough, the S&P 500 Index fell more than 5% last week. This kind of rapid descent has me very concerned for investors holding large allocations to domestic, international and high-yield mutual funds.

What we could be seeing here is the start of a more prolonged correction in the markets. The end of this market rally — what I call the equity endgame — is one of the 2010 investment themes that I have been talking about recently on my radio show.

Now more than ever, I believe it’s crucial that you take a hard look at your portfolio to determine which of your mutual funds are most susceptible to a widespread market decline.

Remember, it was just over a year ago that most investors sustained serious damage to their wealth — damage that, in many cases, will be extremely difficult to recover from. Certainly, Wall Street titans, reckless lenders and irresponsible home buyers all deserve their share of the blame for the market’s meltdown. But one part of the financial world that hasn’t received much scrutiny for its role in that evaporation of investor wealth is the mutual fund industry.

In my latest special report, “Mutual Funds are Hazardous to Your Wealth,” I expose the five serious flaws that are inherent in these investment vehicles. I also tell you why exchange-traded funds (ETFs) are far superior alternatives to traditional mutual funds.

Some of the reasons why I love ETFs are their low cost, diversification and transparency — virtues that are the key to any successful portfolio. For most people looking to grow their serious money over the long term, ETFs are quite simply the best investment vehicles available today.

To get your FREE special report, “Mutual Funds are Hazardous to Your Wealth,” simply click here.

NOTE: Fabian Wealth Strategies is a SEC registered investment adviser, and is not affiliated with Eagle Publishing.